Industrial Engineering Objective Type Questions - Set 04 - ObjectiveBooks

Industrial Engineering Objective Type Questions - Set 04

Practice Test: Question Set - 04

1. If ‘F’ is the fixed cost, ‘V’ is the variable cost per unit (or total variable costs) and ‘P’ is the selling price of each unit (or total sales value), then break-even point is equal to
    (A) (F × V)/P
    (B) (F × P)/V
    (C) F/[1 + (V/P)]
    (D) F/[1 - (V/P)]

2. The critical path of a network represents
    (A) The minimum time required for completion of project
    (B) The maximum time required for completion of project
    (C) Maximum cost required for completion of project
    (D) Minimum cost required for completion of project

3. The break-even point represents
    (A) The most economical level of operation of any industry
    (B) The time when unit can run without i loss and profit
    (C) Time when industry will undergo loss
    (D) The time when company can make maximum profits

4. One of the basic essentials of an incentive plan is that
    (A) A differential piece rate system should exist
    (B) Minimum wages should be guaranteed
    (C) Provide incentive to group efficiency performance
    (D) All standards should be based on time studies

5. Inventory control in production, planning and control aims at
    (A) Achieving optimization
    (B) Ensuring against market fluctuations
    (C) Acceptable customer service at low capital investment in inventory
    (D) Discounts allowed in bulk purchase

6. The allowed time for a job equals standard time plus
    (A) Policy allowance
    (B) Interference allowance
    (C) Process allowance
    (D) Learning allowance

7. Value engineering aims at finding out the
    (A) Depreciation value of a product
    (B) Resale value of a product
    (C) Major function of the item and accomplishing the same at least cost without change in quality
    (D) Break-even point when machine requires change

8. A-B-C analysis
    (A) Is a basic technique of materials management
    (B) Is meant for relative inventory control
    (C) Does not depend upon the unit cost of the item but on its annual consumption
    (D) All of the above

9. Break-even analysis can be used for
    (A) Short run analysis
    (B) Long run analysis
    (C) Average of above two run analysis
    (D) There is no such criterion

10. A big advantage of PERT over Gantt charts is that in the former case
    (A) Activities and events are clearly shown
    (B) Early start and late finish of an activity are clearly marked
    (C) Activity times are clear
    (D) Interrelationship among activities is clearly shown

11. In manufacturing management, the term 'Dispatching' is used to describe
    (A) Dispatch of sales order
    (B) Dispatch of factory mail
    (C) Dispatch of finished product of the user
    (D) Dispatch of work orders through shop floor

12. PERT analysis is based on
    (A) Optimistic time
    (B) Pessimistic time
    (C) Most likely time
    (D) All of the above

13. Actual performance of a task is called
    (A) An event
    (B) An activity
    (C) A duration
    (D) None of these

14. Break-even analysis shows profit when
    (A) Sales revenue > total cost
    (B) Sales revenue = total cost
    (C) Sales revenue < total cost
    (D) Variable cost < fixed cost

15. Gantt charts are used for
    (A) Forecasting sales
    (B) Production schedule
    (C) Scheduling and routing
    (D) Linear programming

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